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MACHINIST - Tamil Nadu allots 50 acres of land at Oragadam to Eicher Motors for expansion

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Tamil Nadu allots 50 acres of land at Oragadam to Eicher Motors for expansion
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Written by Krishna Kumar   
Wednesday, 13 July 2011

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Chennai: The Tamil Nadu government has allotted 50 acres of land at Oragadam SIPCOT Industrial Park, near Chennai, to Eicher Motors Ltd for its proposed expansion plans. The company's subsidiary - Royal Enfield Motors will establish a new greenfield production unit at the site at an investment of Rs 350 crore.

Through this expansion, the company plans to increase the production capacity to 150,000 units from a production capacity of 50,000 units at its plant in Tiruvottiyur near Chennai. The unit is expected to commence production by early 2013.

Chief Minister Jayalalithaa presented a letter regarding the allocation of land to the company's Managing Director Siddharth Lal at the Secretariat here. The  new project is expected to create 900 direct and indirect employment opportunities.

Once the new plant is in place, the company is looking at stepping up exports. By 2012, the company is targeting six per cent of annual sales towards export. Royal Enfield has been recording 40 per cent rise in sales every month during this calendar year.

The company will continue increasing capacity of the existing plant at Thiruvottiyur to support the demand growth and reduce long waiting periods. The capacity will be increased from 50,000 units to 70,000 units at the existing plant.

Eicher was earlier mulling starting operations in Andhra Pradesh.

 
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